3 Types of Investments That Students Can Make

What is meant by investment? 

Investment is the investment of assets or funds made by a company or individual for a certain period of time in order to obtain a greater balance in the future. 

There are many things involved in this activity, and some of them are the amount of funds and the purpose of the investment itself.

We need to know that investment is something we need to prepare for the future. 

We must realize the importance of investing early on for the short, medium and long term. 

If you already understand the importance of investing, then we need to determine the purpose of the investment. 

Such as for example for pension funds, wedding preparations, and education funds for children.

Since 2020, we have seen a booming investment trend around us, even though at that time Indonesia and several other countries were experiencing the Covid-19 pandemic. 

Even the Head of Marketing & Retail of PT Indo Premier Sekuritas Paramita Sari said, in the midst of the Covid-19 pandemic, it turned out that investors' interest in investing in the capital market had actually increased significantly. 

This states the state of the stock market in Indonesia which shows an increase in stock prices alias rebound.

In 2021 the recent investment trend is increasing, here are some popular investments.

1. Stock.

Stock is an investment that has a high level of risk. 

However, this risk is proportional to the gain or imbalance of results obtained. 

This is called a high risk, high return investment. I

f you are able to analyze stocks, manage their risks well, then you can make a lot of money. 

Hundreds even of percent.

Some stocks now offer small capital shares starting in the hundreds of thousands. 

Suitable for students' pockets, which are still limited, so that even students can now invest through several platforms such as seed.id, magic, bareksa, and many others.

2. Mutual funds.

One of the most widely used types of investment is mutual funds. 

This type of investment is also the easiest to achieve because there are many offers on various platforms.

Mutual funds are collections of funds that are managed to make investments such as buying stocks, bonds and other financial instruments. 

Mutual funds are also one of the easy investments because they do not require a very large capital, can be done individually or institutionally, and an investment manager who helps you.

Investing in mutual funds is also easy because investors don't need to jump right in to put their investments together. 

The investment has been entrusted to the fund manager. On the other hand, the nominal amount of funds required is not large, so anyone can do it.

3. Gold investment.

Gold is a current asset which means it is easy to liquidate. 

In addition, gold is also easy to get in less than a year. 

Thus, gold is easily liquidated in the form of money at any time when there is an emergency and other urgent need. 

Gold prices are volatile because they are influenced by various factors, such as interest rates and economic conditions. 

Even so, gold prices need a long period of time to rise significantly.

Gold liquidity is much higher than stocks or property.